Homestead property tax exemptions: Don’t pay more than your fair share

You may have noticed that your home value has skyrocketed in the last two years. Know who else has noticed? Your local appraisal district.

That is bad news for your property tax. A higher home value means a higher property tax. You can protest your property valuation once a year. In the meantime, one good way to whittle homestead property taxes down is to review the available exemptions.

Texas, as a state, does not assess property taxes. Property taxes are local taxes. Exemptions are calculated by each taxing unit. The local taxing units include school districts, counties, cities, junior colleges and special districts.

Exemptions come in two flavors: mandatory and discretionary. There is a mandatory residential homestead exemption of $3,000 for counties and $25,000 for school districts.